As per finance bill income tax rate for individual person has been revised. New rates are effective from 2078 Shrawan 1 to 2079 Ashad 31.
Income tax rate for Individuals (Unmarried)
| Annual Income | Income Tax Rate (FY 2077/78) |
| Up to Rs 4,00,000 | 1% |
| Additional Rs 1,00,000 | 10% |
| Additional Rs 2,00,000 | 20% |
| Additional Rs 1,300,000 | 30% |
| Additional Tax Above Rs 2,000,000 | 36% |
Income Tax Rate for Married Couple
| Annual Income | Tax Rate In Nepal (FY 2077/78) |
| Up to Rs 450,000 | 1% |
| For Additional Rs 100,000 | 10% |
| For Additional Rs 200,000 | 20% |
| For Additional Rs 1,250,000 | 30% |
| Additional Tax Above Rs 2,000,000 | 36% |
Income Tax Rate for Non-Residents
| Source of Income | Tax Rate |
| Normal transactions | 25% |
| Through shipping, air or telecom services, postage, satellite and optical fiber project | 5% |
| Shipping, air or telecom services through the territory of Nepal | 2% |
| Repatriation of profit by Foreign Permanent Establishment | 5% |
Coprorate Income Tax Rates
| Type of Business | Normal Tax Rate | Rebate | Applicable Tax Rate |
| Normal Business | 25% | – | 25% |
| Special Industry under section 11 for the whole year | 25% | 20% | 20% |
| Constructing and operating ropeway, cable car, railway, tunnel or sky bridge | 25% | 40% | 15% |
| Constructing and operating roads, bridges, tunnel, railway, and airports | 25% | 50% | 12.50% |
| Trolley bus or trains | 25% | 40% | 15.00% |
| Entities with export income from a source in Nepal | 25% | 20% | 20% |
| Banks and financial institutions (A,B & C Class) | 30% | – | 30% |
| General Insurance (Non-Life Insurance) | 30% | – | 30% |
| Tobacco, alcohol, cigarette and related products | 30% | – | 30% |
| Telecom and Internet Services | 30% | – | 30% |
| Capital market, Securities, Merchant banking, Commodity future market, Securities & Commodity broker | 30% | – | 30% |
| Money transfer | 30% | – | 30% |
| Petroleum business under Nepal Petroleum Act, 2040 | 30% | – | 30% |